Mergers

Radio-Victor. The little dog in Victor Talking Machine Co.'s trademark last week heard the Voice of a new Master. For, in confirmation of months of rumor, there was announced the merger of Victor Talking Machine with Radio Corp. of America. The day before the merger was definitely announced, Radio stock rose 42 points, Victor 19 1/4. Gross income of Radio for 1927 was $65,082,074; gross sales of Victor were $46,886,842, thus making the business of the merged companies about $112,000,000 annually. Plans provide for a complete merger of the two companies (not for the creation of a holding company) with a stock exchange, terms of which have not been announced. As the result of various recent mergers, Radio Corp. now controls or is affiliated with Victor Talking Machine, Radio-Keith-Orpheum (with its outlet for the Photophone) theatre chain, National Broadcasting Co. chain, Film Booking Offices, Inc., cinema producers, exhibitors.

British Cinema. The two largest organizations in British cinema last week merged to form a $70,000,000 unit controlling some 300 British theatres. Gaumont British Corporation acquired control of Provincial Cinematograph Theatres Ltd. Gaumont has been both producer and exhibitor; Provincial is solely an exhibition chain. Gaumont has a sound-picture device, called the "British acoustics system." There is also an Anglo-German "talkie," better than British "acoustics," comparable with the U.S. talking picture machines. Either British acoustics or the Anglo-German mechanism will presumably be installed in the Gaumont houses, to the exclusion of U.S. sound pictures.

Dawes-Banks. Two Chicago banks--Central Trust Co. and Bank of America, --last week merged to create a $161,000,000 bank, to be chairmaned by U. S. Vice President Charles G. Dawes.

Aviation. To the pilot, aviation may mean a job, a salary. To the pedestrian, it may mean dark specks droning toward the horizon. To the entrepreneur, it means stocks, incorporations, earnings, mergers, an infant industry for skilled hands to shape. One such shaping took form last week with the incorporation of United Aircraft and Transport, Inc. A holding company, it will own all stock of Pratt & Whitney Aircraft Co. (Wasp, Hornet motors), Chance Vought Corp. (Corsair planes) Boeing Airplane and Transport Co. (manufacturers and transporters). Capitalization: 1,000,000 shares 6% preferred, par $50; 2,500,000 common. President: William E. Boeing, president of Boeing. Board Chairman: Frederick B. Rentschler, President Pratt & Whitney. Financing handled by National City of Manhattan, Pacific National of Seattle. Officials of National City, Standard Oil, Ford Motor and General Motors are directors.